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    ktl03's Avatar
    ktl03 Posts: 1, Reputation: 1
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    #1

    Oct 12, 2008, 10:09 PM
    Weighted average number of common shares outstanding
    I am having some trouble figuring out what the weighted-average number of shares outstanding will be for 2007 and 2008. I need to have this information to present on comparative statements at the end of 2008.

    Information:
    450,000 shares no-par common stock issued and outstanding.
    All shares were sold for $7.50 per share.
    On June 30 2007 the firm issued an additional 135,000 shares for $7.00 per share.
    The 2007 income was $319,200
    On September 1, 2007 there was a 15% stock dividend issued to all common shareholders.

    On October 1, 2008: 60,000 shares were reacquired as treasury shares.
    Net Income in 2008 was $278,063

    Thank you so much for your help!
    CliffARobinson's Avatar
    CliffARobinson Posts: 1,416, Reputation: 101
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    #2

    Mar 14, 2012, 05:06 PM
    The weighted average of outstanding shares is a calculation that incorporates any changes in the amount of outstanding shares over a reporting period. It is an important number, as it is used to calculate key financial measures such as earnings per share (EPS) for the time. Source
    The quote above is from Investopedia, and includes a great problem and solution to answer your question.
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